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Gold Market Update: Gold Trading In A Narrow Range

ByGoldTradingExperts.com
Published 11/28/2013, 09:27 AM
Updated 07/09/2023, 06:31 AM

Gold reversed course at the upper boundary of the down trend channel yesterday and retraced most of Monday's rally, closing around $1238 and posting a bearish "shooting star" candlestick on the daily chart.

This morning, the trading is quiet as expected with Thanksgiving in the US. Gold is trading in a narrow range either side of $1240.

It is clear that any rallies are being pounced upon as selling opportunities and the "easy money" in gold is to be made on the short side at the moment. The 200 hour MA is tracking the upper boundary of the down trend channel and has acted as resistance for the last month.

The sharp selling in oil continues, with far higher than forecast crude inventories prompting another wave of selling yesterday. Equities remain at or near all time highs, whilst we see that the dollar is weak and cannot regain the key 81 level. Gold's poor performance in light of the dollar's weakness is ominous for the gold bulls - any sharp dollar rally will see gold plunge lower and make a revisit to $1180 a virtual certainty.

Support can be found at $1235, $1225, $1220, $1238, $1250, $1207-$1210, $1200 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term.

Resistance can be found at $1244, $1250, $1260, $1270, $1277-$1280 and $1291-$1295. A break above $1295 would suggest an end to the downtrend, though it would take a break of $1360 to confirm this was the case.

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